The US House of Representatives has rejected a Senate-passed bill aimed at funding the government, and House Speaker Kevin McCarthy’s proposals have so far failed to attract the interest of far-right lawmakers in the chamber – all actions that indicate the US government is heading towards at least a partial shutdown starting on the 1st of October.
A US government shutdown, which occurs when Congress fails to pass legislation to fund the next fiscal year, would prevent virtually all federal agencies and departments from doing anything deemed “non-essential.” Even if the shutdown is just a matter of hours — one in February 2018 lasted less than a day — cryptocurrency bills may take a backseat to other policies among lawmakers once activities resume.
Billing on the good or bad of digital assets will be halted amid the shutdown, and financial regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission, will operate on a skeleton crew. After the 2019 shutdown, Cointelegraph reported that SEC officials had limited enforcement and oversight capabilities.
“[I]“In the wake of the shutdown, it is not clear what issues will rise to the top of the priority list in terms of gathering Congress’ attention,” Sheila Warren, CEO of the Cryptocurrency Innovation Council, told Cointelegraph. “Aside from funding the government, Congress faces a number of legal deadlines that “Additional legislative action will be required before the end of the year.”
In July, lawmakers on the House Financial Services Committee voted to pass the Financial Innovation and Technology for the 21st Century (FIT) Act, the Blockchain Regulatory Certainty Act, the Payment Stablecoins Clarity Act, and the Keep Your Coins Act. If a lockout occurs, no action can be taken on cryptocurrency-focused bills – no amendments and no votes.
Warren suggested that Congress’ priorities could easily shift from cryptocurrencies to any number of emerging issues amid the shutdown, and there will likely be additional distractions as the 2024 election approaches. Treasury Secretary Janet Yellen also expressed her opposition to “House Republicans’ failure to act.” In a speech on September 29, she claimed that the lockdown was “dangerous and unnecessary” and could “cause economic headwinds” in the future.
If a government shutdown occurs, much vital work in science and health, from cancer research to food safety, could be affected.
The American people need House Republicans to do their job: fund the government.
– Joe Biden (@JoeBiden) September 28, 2023
Related: US Government Shutdown Looms – 5 Things to Know About Bitcoin This Week
Before any bills were introduced in the House, several Democratic members of the House Financial Services Committee harshly criticized Republicans at a September 27 hearing, even though the focus was aimed at oversight of the Securities and Exchange Commission. Virginia Representative Don Beyer was one of the few Democrats to push a cryptocurrency-related bill amid concerns about government funding, but lawmakers are unlikely to take up the legislation before October 1.
“It seems increasingly likely that there will be a shutdown in the fractured House [Republican] “The divisions and the Senate are going in their own direction.” He said Blockchain Association Director of Government Relations Ron Hammond in Topic X on September 25. “For cryptocurrencies, the longer the lockdown lasts, the more various bills will be paid including the FIT/market structure and stables.”
At press time, the price of Bitcoin (BTC) has fallen below $27,000 but does not appear to be linked to any news of congressional spending bills or the SEC’s premature move on delaying decisions on spot Bitcoin exchange-traded funds. In contrast, the price of Ethereum (ETH) has risen above the $1,600 level in the past three days as companies announced their intention to launch ETFs tied to Ethereum futures contracts in the first week of October.
magazine: US Government Got My $250,000 Bitcoin Price Prediction Wrong: Tim Draper, Hall of Flame
Latest news about Bitcoin, Ethereum, Blockchain, Altcoin, Litecoin, Ripple, Mining, Policy and Regulations, Cryptocurrency prices, and Technology